The Board of Directors of OGDCL, in its meeting held on Friday, October 25, 2024, in Islamabad, announced the financial results for the quarter ended September 30, 2024. The company reported net sales revenue of Rs. 106.01 billion, with a profit after tax of Rs. 41.019 billion, translating to earnings per share (EPS) of Rs. 9.54.
The Board announced a first interim cash dividend of Rs. 3.00 per share (30%) for the quarter ended September 30, 2024, up from Rs. 1.60 per share (16%) during the same period last year (2023). Previously, in its meeting on September 23, 2024, the Board had recommended a final cash dividend for the year ended June 30, 2024, at Rs. 4.00 per share, amounting to Rs. 17,204 million. Notably, this final quarterly dividend of Rs. 4.00 per share marks the highest quarterly dividend in the Company’s history, bringing the total cumulative dividend payout to 101%.
Despite a challenging energy and crude oil price environment, a decline in operating expenses was recorded across all quarters compared to the previous fiscal year 2023-24. This reduction reflects the company’s commitment to administrative and operational efficiencies implemented by management. Additionally, an increase in finance and other income by Rs. 9.476 billion over 1Q 2023-24 positively impacted the company’s financials. The current quarter’s collection stood at 121% against billing.
OGDCL’s financial performance was, however, impacted by a final tax payment of Rs. 9.498 billion on bonus shares issued by MPCL. Additionally, forced production curtailments by SNGPL and UPL, with a financial impact of Rs. 5.230 billion, contributed to lower profitability, together negatively affecting EPS by Rs. 3.42.
The decline in production output is attributable to forced production curtailments and delays in the delivery of production enhancement equipment by vendors. To address this, OGDCL has implemented an aggressive short-term plan to counter the production decline curve and augment oil and gas production, with results expected to reflect in the upcoming quarters of fiscal year 2024-25.
OGDCL contributed Rs. 42.09 billion to the national exchequer through taxes, dividends, and royalties. During the reporting period, the company’s exploration efforts yielded two gas condensate discoveries in Punjab and Sindh. The expected combined daily production potential from these discoveries is 388 barrels of crude oil and 13 MMcf of gas, with 2P reserves estimated at 0.41 MMSTB and 17.18 bcf, respectively. These discoveries underscore OGDCL’s commitment to expanding its resource base to support the country’s energy needs.
Moreover, OGDCL has initiated a diversification effort to assess the geothermal potential of its fields. The ongoing R&D project, in collaboration with Schlumberger, is expected to be completed by December 2024, marking a significant step in expanding the company’s energy portfolio. Regarding the Reko Diq project, the feasibility study is in its final stages, with international advisors closely engaged to meet project development timelines in alignment with R&D targets. The company remains committed to maintaining operational excellence, exploring new growth opportunities, maximizing shareholder value, and supporting Pakistan’s energy needs.
The Board expressed appreciation for the management’s efforts in driving the company’s overall performance, which has significantly contributed to sustainable growth and energy security for the country.
Issued by: Zeeshan Zaidi, Manager External Communications Mobile: 03000506560 / 0300-9557282
